Hawaii Water has filed a request with the Hawaii Public Utilities Commission (PUC) to increase water and sewer rates in its Kapalua water and wastewater systems for the first time since acquiring the systems in 2021. The request seeks to increase revenues by $2.2 million to recover increases in purchased water costs, higher operating expenses, and the cost of completed capital investments.
Hawaii Water’s $3.4 million in infrastructure investments have funded upgrades and maintenance of the local water and wastewater systems, which are designed to enhance quality, reliability, and sustainability. Some of the major capital improvements made in Hawaii Water’s Kapalua service area include:
- Rehabilitation and upgrade of critical potable water storage facilities to expand water supply reliability.
- Replacement of aging valves to improve water system reliability and control.
- Replacement of emergency backup power generators to help maintain water pressure during power interruptions and improve fire protection.
- Significant improvements in a sewer pump station serving D.L. Fleming State Beach Park by replacing existing, aging pumps with new, surface-serviceable pumps and relocating controls above ground to improve response time, access, reliability, and efficiency.
- Replacement of lift station and sump pumps used in the wastewater treatment process to reduce the risk of future system leaks.
Additionally, the proposed increase covers additional operating expenses, such as about $1.7 million annually to purchase potable and non-potable water; labor costs; and inflation. The utility proposes to pass purchased water costs directly to customers on a dollar-for-dollar basis.
“Since we acquired the Kapalua systems, we have been committed to providing our Kapalua customers safe, clean, reliable water and wastewater services at affordable rates, and the important, strategic upgrades we have made in the last four years are critical to fulfilling this commitment,” said Marty Kropelnicki, Chairman and CEO. “We have simultaneously worked to control expenses to help keep service affordable, and be a responsible steward of the environment, which is even more vital in the face of Maui’s worsening drought.”
If approved as filed, new rates could become effective in the second half of 2026.
